Forge Lab
I want to make sure that this topic is treated with dignity and respect because, at the end of the day, we're all humans the idea of eradicating poverty is one that's always been there. So at no point in this article do I want to come across as a reductionist there are monumental challenges when it comes to solving Global poverty and what I'm going to talk about isn't a complete solution.
A staggering three billion people in the developing world are currently disconnected from the internet. In the next five years, a billion of them will join the digital age, thanks in no small part to technological advancements emerging from Silicon Valley and beyond.
Imagine a world where children go hungry, unable to attend school due to exhaustion, and their dreams are shattered before they even begin. This was the reality for countless families in developing nations. Yet, there is a surprising solution that has emerged with the humble feature phone. By leveraging mobile money transfer technology, these simple devices are empowering communities and transforming lives. From paying for life-saving medical treatments to starting small businesses, these phones are providing a lifeline to those trapped in poverty. This innovative approach offers a beacon of hope, demonstrating how technology can be a powerful tool for social change.
These feature phones, though lacking the advanced capabilities of smartphones, have become powerful tools in the fight against poverty.
The Role of Feature Phones in Financial Inclusion
Feature phones are simple mobile devices that support voice calls, SMS, and basic applications. Their affordability and durability make them prevalent in low-income communities. Through technologies like Unstructured Supplementary Service Data (USSD), these phones enable users to access financial services without the need for internet connectivity.
USSD: Bridging the Financial Gap
USSD is a communication protocol used by GSM cellular telephones to communicate with the service provider's computers. By dialing codes that start with * and end with #, users can navigate menus to perform various tasks. This technology has been instrumental in delivering mobile financial services to low-income customers. For instance, in Africa, over 90% of mobile money transactions are driven by USSD, indicating a significant reliance on feature phones for financial activities.
IT News Africa
Success Stories
• M-Pesa in Kenya: Launched in 2007, M-Pesa allows users to deposit, withdraw, transfer money, and pay for goods and services using their mobile phones. It operates primarily through USSD, making it accessible to feature phone users. By 2023, M-Pesa had over 56.7 million customers, significantly enhancing financial inclusion in Kenya and other African countries.
Adapt IT Telecoms
• bKash in Bangladesh: Established in 2010, bKash provides a mobile financial service platform accessible via USSD. It enables users to transfer money, pay bills, and purchase airtime. bKash has become integral to daily life in Bangladesh, promoting financial inclusion among the unbanked population.
Wikipedia
Impact on Poverty Alleviation
Access to mobile money services through feature phones has empowered individuals in several ways:
• Economic Empowerment: Individuals can save securely, access credit, and receive remittances, enhancing their economic stability.
• Business Growth: Small businesses can perform transactions efficiently, manage finances better, and reach a broader customer base.
• Disaster Resilience: Mobile money enables quick distribution of aid during emergencies, ensuring timely assistance to those in need.
Challenges and the Way Forward
Despite the successes, challenges remain, including:
• Regulatory Hurdles: Navigating financial regulations can be complex, requiring collaboration between stakeholders to create enabling environments.
• Digital Literacy: Educating users on utilizing mobile financial services is crucial for maximizing benefits.
How can Network Theory contribute to these efforts?
USSD-Based Financial Services Platform
Description:Â Develop a platform that operates over USSD (Unstructured Supplementary Service Data), allowing users to perform financial transactions without internet access.
USSD vs. Mobile Applications
Unlike mobile applications that require installation and often depend on internet connectivity, USSD operates over the cellular network's signaling channels. This means users do not need to download any app or have internet access to use USSD services. For instance, dialing *#06#Â on any mobile phone displays the device's IMEI number using USSD, demonstrating its universal applicability.
TWILIO
Advantages of USSD for Feature Phones
• No Internet Required: USSD functions without internet connectivity, making it ideal for regions with limited or no data services.
• Immediate Response: USSD sessions establish a real-time connection, allowing for instant two-way communication.
• Broad Device Support: USSD works across all GSM devices, from basic feature phones to advanced smartphones.
• Implementing USSD Services on Old Nokia Phones
1. To develop a USSD-based platform compatible with older Nokia feature phones, consider the following steps:
2. Service Design: Create simple, text-based menus that are easy to navigate using numerical inputs, accommodating the limited interface capabilities of older devices.
3. Testing Across Models: Ensure the USSD service is tested on various Nokia models to confirm compatibility and usability, as some models may handle USSD interactions differently.
4. User Education: Provide clear instructions on how to access and use the USSD services, considering that some users may be unfamiliar with USSD operations.
Key Features:
• Peer-to-Peer Money Transfers: Enable users to send and receive money securely.
• Bill Payments: Allow payment of utilities, school fees, and other essential services.
• Airtime and Data Purchases: Facilitate the purchase of mobile airtime and data bundles.
• Micro-Savings Accounts: Provide options for users to save money safely.
• Micro-Loans and Credit Services: Offer small loans based on transaction history and savings patterns.
Addressing these challenges involves continuous innovation, policy support, and community engagement to ensure that mobile money services via feature phones continue to uplift underserved populations.
In conclusion, the humble feature phone, exemplified by models like the old Nokia, has transcended its basic functionality to become a catalyst for financial inclusion and poverty alleviation. Through USSD-based mobile money services, these devices empower communities, promote economic stability, and pave the way for a more inclusive financial future.
https://www.weforum.org/stories/2024/01/digital-divide-internet-access-online-fwa/